{"id":127805,"date":"2018-06-01T06:55:09","date_gmt":"2018-06-01T10:55:09","guid":{"rendered":"http:\/\/countingpips.com\/?p=127610"},"modified":"2018-06-01T06:55:09","modified_gmt":"2018-06-01T10:55:09","slug":"stocks-fall-as-us-tariffs-revive-trade-war-fears","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/06\/stocks-fall-as-us-tariffs-revive-trade-war-fears\/","title":{"rendered":"Stocks fall as US tariffs revive trade war fears"},"content":{"rendered":"
June 1, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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SP 500 logs monthly gain<\/h2>\n<\/div>\n<\/div>\n

US markets\u00a0<\/b>reversed most of previous day gains on Thursday as trade war concerns came to fore again after US imposed tariffs on steel and aluminum imports from the European Union, Canada and Mexico starting Friday.\u00a0Dow Jones\u00a0<\/em>industrial average lost 1% to 24415.84. The\u00a0S&P 500\u00a0<\/em>slid 0.7% to 2705.27, but closed 2.2% higher for the month. The\u00a0Nasdaq<\/a>composite fell 0.3% to 7442.12. The dollar weakening slowed: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, fell 0.1% to 93.96 but is rebounding currently. Stock index futures point to higher openings today.<\/p>\n

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Global trade war scenarios got more real after Canadian Prime Minister Justin Trudeau said Ottawa would impose a 25% tariff on steel imports from the US, a 10% tariff on aluminum and other US goods, Mexico said it would target several US goods in response and the EU has announced it may target industries such as whiskey and motorcycles. Market reaction to positive economic news was muted: spending on consumer goods rose sharply for a second straight month in April, up 0.6%, the PCE index, the Fed\u2019s preferred inflation gauge, was up 0.2% on month instead of expected 0.1%, and the Chicago purchasing managers index came in at 62.7, compared with the previous level of 57.6.<\/p>\n<\/div>\n<\/div>\n

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DAX slumps most as European indices slip<\/h2>\n<\/div>\n<\/div>\n

European stock indices\u00a0<\/b>ended lower on Thursday as US imposed earlier announced tariffs on EU steel and aluminum imports. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>continued rebound against the dollar with euro up currently while Pound is lower. The Stoxx Europe 600 index lost 0.6%. Germany\u2019s\u00a0DAX 30\u00a0<\/a>dropped 1.4% to 12604.89. France\u2019s\u00a0CAC 40\u00a0<\/em>fell 0.5% and UK\u2019sFTSE 100\u00a0<\/em>slid 0.2% to 7678.20. Markets opened 0.5% – 0.9% higher today.<\/p>\n

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Jean-Claude Juncker, president of the European Commission, tweeted that EU will defend Europe\u2019s interests. The EU has threatened to impose $3.5 billion of tariff on US agriculture, steel and industrial products. In response Trump has threatened to impose import tax on European cars. In Italy the antiestablishment League and 5 Star Movement have agreed to revive a coalition government, withdrawing the candidacy of Paolo Savona for finance minister. In economic news inflation jumped to 1.9% in April in euro-zone, closer to ECB\u2019s 2% target.<\/p>\n<\/div>\n<\/div>\n

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Asian markets down<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly lower today.\u00a0Nikkei\u00a0<\/em>slid 0.1% to 22171.35 in choppy trade despite resumed yen slide against the dollar. Chinese stocks are lower as Caixin China manufacturing PMI held steady in May : the\u00a0Shanghai Composite Index<\/em>is 0.7% lower while Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is up 0.2%. Australia\u2019s All Ordinaries Index is down 0.4% despite Australian dollar continued slide against the greenback.<\/p>\n

\"HK50\"<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>\n

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<\/div>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets SP 500 logs monthly gain US markets\u00a0reversed most of previous day gains on Thursday as trade war concerns came to fore again after US imposed tariffs on steel and aluminum imports from the European Union, Canada and Mexico starting Friday.\u00a0Dow Jones\u00a0industrial average lost 1% to 24415.84. The\u00a0S&P 500\u00a0slid 0.7% to 2705.27, but closed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-127805","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/127805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=127805"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/127805\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=127805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=127805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=127805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}